Econ 101 Class 2 Questions
1.
It is hot at the football game and Joe is thirsty. He would pay up to $5.00 for a 20 oz cola.
He goes to the concession stand and finds that he can buy a 20 oz cola for $3.00. His economic
surplus from the transaction is…
A.
$0.00.
B.
$3.00.
C.
$2.00 **.
D.
$5.00.
2.
You won a free ticket to an Eric Clapton concert (which has no resale value). A Bob
Dylan concert on the same night is your next-best alternative activity. Tickets to see Dylan cost
$40. You would be willing to pay up to $50 to see Dylan. There are no other costs. What is your
opportunity cost of the Clapton Concert?
3.
You can buy a game for $25 at the Ram shop or $15 at University Mall. You can buy a
computer for $1000 at the Ram shop or $990 at University Mall. Should your answer about where
to buy be the same or different for the two cases?
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- Fall '07
- BALABAN
- Economics, A. Joe, lower marginal cost, higher marginal benefit, ram shop
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